PRESENTATION FINANCIAL STATEMENTS 30 June 2020 1 1. 2020 - - PowerPoint PPT Presentation

MANAGEMENT PRESENTATION

FINANCIAL STATEMENTS 30 June 2020

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1. 2020 PRIORITIES

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2020 PRIORITIES IN LIGHT OF COVID-19

Production & Procurement Product Mix and Marketing Financials & Leverage Human Resources Government Support

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• No significant debt maturities

in near term

• Significant support from

relationship banks

• Maintain sufficient liquidity
• Efficiency in expenses
• No cancelled purchase orders thus far
• Product mix has evolved
• Commence production of protective

face masks and coverall suits

• Use online store as an additional

channel for selling product

• Develop online store to support both

B2B and B2C

• Health & Safety is priority #1
• Regular temperature screening
• Physical distancing
• Personal hygiene
• Ongoing factory operations
• Zero layoffs to date
• 3 shifts rotation
• Adjust raw material mix
• Tap on diversified supply of raw

materials

• Textile manufacturing as

“essential” industry

• Letter from Ministry to maintain
• peration
• Government tax stimulus for

income tax reduction

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2.

1H 2020 PERFORMANCE

Financial summary

A D

Credit metrics and debt maturity

C

Balance sheet

B

Sales and COGS

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• A. FINANCIAL SUMMARY

SALES GROSS PROFIT AND GROSS PROFIT MARGIN

(USD.Mn) (USD.Mn)

NET PROFIT AND NET PROFIT MARGIN

(USD.Mn)

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• B. SALES AND COGS

SALES COST OF GOODS SOLD

(USD.Mn) 1H2019 1H2020 Export Yarn 143.3 125.4 Fabric 106.4 96.5 Garment 107.5 91.0 Greige 20.5 19.7 Sub-total export 377.7 332.6 Local Yarn 110.9 108.0 Fabric 62.4 65.7 Garment 61.4 84.0 Greige 20.0 17.9 Sub-total local 254.7 275.6 Total sales 632.4 608.2 (USD.Mn) 1H2019 1H2020 Raw materials used 398.3 397.9 Direct labor 29.2 28.9 Factory overhead 77.5 74.7 Electricity and water 29.9 29.7 Depreciation 25.6 22.8 Rent 6.3 6.4 Spare part usage 7.7 7.2 Import cost 1.6 1.3 Fuel consumption 1.3 1.1 Insurance 0.4 0.6 Amortization 0.0 0.0 Others 4.7 5.6 Total manufacturing cost 505.0 501.5 Change in work in process 0.0 (1.3) Change in finished goods (0.5) (2.7) Cost of goods sold 504.5 497.5 1 2 3 4 5

• Some delays in export orders, but no cancellations
• Reduced revenues due to drop in sales volumes
• Increase in production volumes of medical products such as masks

and protection clothing

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• Increase in raw materials to revenue % composition due to

production of medical products in response to COVID-19 situation

• Managed to enhance hygiene and safety protocol in factory during

COVID-19 situation while maintaining cost efficiency related to Direct Labor and Factory Overhead

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TOTAL INTEREST BEARING DEBT CASH AND CASH EQUIVALENTS TOTAL EQUITY TOTAL ASSETS

(USD.Mn) (USD.Mn) (USD.Mn) (USD.Mn)

• C. BALANCE SHEET

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LEVERAGE MULTIPLES TOTAL INTEREST BEARING DEBT / TOTAL ASSETS

• D. CREDIT METRICS

covenants of the Company’s 8

• D. DEBT MATURITY PROFILE

53 8 3 2 350 25 150 225 2020E 2021E 2022E 2023E 2024E 2025E Short-term bank loans Long-term bank loans Syndicated loan Notes Payable 8

(USD.Mn)

• No significant debt maturities in the near term, with the closest one being the syndicated loan facility which is

due only in 2022

• Sufficient cash balance (US$160m as of June 2020), and available bank lines to weather potential downturn
• Support from relationship banks - recently received majority consent for loan covenant relaxation
• Flexibility to delay discretionary capex depending on macro environment

Note: Debt maturity profile as of 30 June 2020, based on principal amounts of debt.

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15 101 48 350 152 225 3 40 25

MTN

Appendix

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COVID-19 PRODUCTS

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COVID-19 PRODUCTS

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COVID-19 PRODUCTS

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COVID-19 PRODUCTS

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COVID-19 PRODUCTS

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COVID-19 PRODUCTS

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CONTRIBUTION TO COMMUNITY

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CONTRIBUTION TO COMMUNITY

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CONTRIBUTION TO COMMUNITY

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DISCLAIMER

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THANK YOU

Integrated Vertical Textiles – Garments Plant

an ISO 9001 & ISO 14001 Certified Company

CLOTHING THE WORLD

PT SRI REJEKI ISMAN Tbk

• JL. KH. Samanhudi 88 Jetis

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• Jl. Jenderal Sudirman Kav 52-53

Jakarta Selatan 12190 – INDONESIA Tel : +62-21 2995 1619 Fax : +62-21 2995 1621 21